MADISON, Wis. (5/13/13)--Credit union mergers continue to occur nationwide, with smaller credit unions looking to pool their resources through consolidation to better serve members, while others look to garner larger memberships or growth in a specific community or area.
Among the mergers:
- Cone Drive Gears FCU, based in Traverse City, Mich., with $3.6 million in assets, merged into Traverse City, Mich.-based Members CU with $210.5 million in assets. The recent economic downturn and regulatory pressure from the Dodd Frank Act led to Cone Drive Gears FCU seeking the merger, said Members CU (SNL Bank and Thrift Daily May 1).
- The $10.4 million asset Brockton (Mass.) Postal Employees CU--the oldest U.S. postal credit union--merged into Brockton-based Crescent CU, with $401.8 million assets, and the new entity operating under the Crescent CU name. The merger will allow both credit unions to garner a more competitive edge amid a time of compressed margins and low interest rates, Crescent said (Banker & Tradesman May 8).
- Oak Creek, Wis.-based Lakeside CU, with $8.8 million in assets, merged into Educators CU, based in Racine, Wis., with assets of nearly $1.5 billion. Educators' members were looking to get a branch in the Oak Creek area, so the addition of Lakeside fits that need, Educators said (MilwaukeeJournal-Sentinel April 25).
- Two Houston credit unions, StarTrust FCU, the former Enron employees credit union, will merge with InvesTex CU, effective July1, to achieve competitive advantages and economies of scale, according to the StarTrust website. The merger will create a credit union operating as InvesTex CU, with six branches in the Houston area and more than $170 million in assets, serving roughly 27,000 members.